Government Pledges 70% LNG Supply to Fertiliser Plants
Government Guarantees 70% LNG Supply for Fertiliser Plants
New Delhi: The government on Tuesday announced that fertiliser plants have been placed under ‘priority sector-2’ for natural gas supply, ensuring the industry receives at least 70% of its average LNG consumption, according to reports by Dipak Dash.
Measures to Safeguard Fertiliser Production
The Ministry of Petroleum and Natural Gas stated that the average supply will be calculated based on the previous six months’ consumption. The move is aimed at protecting domestic fertiliser production from global supply chain disruptions, particularly issues related to liquefied natural gas (LNG).
Current Stock and Industry Concerns
While the ministry confirmed that the current urea stock of around 6.2 million tonnes is adequate, industry sources warned that the 30% reduction in LNG supply a critical feedstock for urea production could reduce the opening stock in April. The actual impact will depend on the duration of the supply disruption.
Ensuring Stability in the Sector
Officials said that prioritising fertiliser plants for LNG supply will help maintain production levels and safeguard India’s agricultural sector, even amidst fluctuations in global energy markets.
